The Uber London ban is far from settled, and the company intends to appeal the decision. However, the fact that Transport for London refused Uber a license has ramifications for the rest of the gig economy.
The good news? It’s probably going to be helpful for gig economy workers in the long run.
Uber has to take issues seriously
Issues with Uber business practices have hit the headlines for months now. However, Transport for London specifically cited several issues in their ban. These issues mainly centered on treatment of drivers, along with use of software.
Gig economy worker rights have been the topic of lawmaker discussion for the last few months. Many dislike that gig economy workers don’t have the same benefits or security as traditional employees. Others have said that the flexibility is worth the risk. However, some issues, like harassment reports and unreliable background checks, are a little less flexible. Uber has, unfortunately, ignored a whole host of issues which give backing to the ban.
While London wouldn’t be the first foreign market Uber has had to pull out of, losing London would be a huge blow to the company. Uber has only been in London for five years, but it’s served 3.5 million riders.
While the gig economy as a whole may benefit from the London wake-up call, the 40,000 Uber drivers in London will also suffer from the ban.
A Change.org petition to keep Uber in London has over 250,000 signatures already. However, even if Uber wins their appeal and is able to stay in London, they’re going to have to make changes. The ban could easily set a precedent for other major cities that are questioning Uber. If the company doesn’t want another slew of legal issues to deal with, it’ll have to address the treatment of employees and overall business practices cited by Transport for London.
Uber’s competition could have the upper hand
While Uber navigates legal battles and often damaging media coverage, its competitors have a clear shot at taking the London market.
There are several lesser known alternatives to Uber in the UK, including Gett and MyTaxi. Another is Kabbee, a minicab aggregator that claims to be cheaper than the notoriously expensive London black cabs. As with other Uber competitors, these companies have struggled to compete with such a large company. However, the ban could clear the way for more competition and opportunities for drivers.
The UK rideshare companies aren’t the only ones taking advantage of Uber’s shaky situation. Lyft has been dropping hints about expansion beyond the U.S. It recently expanded to cover more U.S. cities. One of their most recent hints indicated they were looking at the UK, Australia, New Zealand, and Mexico.
What should drivers do in light of Uber London?
Drivers need to be sure to stay ahead of the curve. If you are only using Uber, consider diversifying your platforms. Try Lyft, or take a look at other platforms that may be specific to your region. Remember, you are your own business. The gig economy doesn’t promise much to its workers. Until that changes, you have to set yourself up to succeed.
